The inventory management optimization as the basic еlement of the enterprise’s logistic strategy


  • Artem Suchkov Zaporizhzhia National University, Zaporizhzhia, Ukraine
  • Aljona Pomogaiko Zaporizhzhia National University, Zaporizhzhia, Ukraine
Keywords: optimization, logistic processes, logistic strategy, stocks, material flow, inventory management

Abstract

Recently the special attention is drawn to the optimization of the enterprises’ activity in the context of the up-to-date market situation. It is worth to note that the creation of a certain quantity of the material resources stocks is the main condition of the guaranteeing of the manufacturing process continuity. The actuality of the problem of the material stocks optimization and effective inventory management is due to the fact that the stocks’ condition has the determining influence on the enterprise’s competitiveness and financial results. The inventory management is the key element of the logistics and it should be integrated into the unified system with the purpose of achieving the target standards. The application of such integrated logistic strategy can help to increase the competitiveness of the enterprise, improve its financial position and financial results by the inventory management optimization.

Purpose. The subject of the study is the economic relations developed in the process of the inventory management at the enterprise. The purpose of the paper is to determine the scientific-grounded proposals for the inventory management improving at the enterprises as the basic element of the logistic strategy.

Design/methodology/approach. The basic principles of this research are the causality and objectivity principles, systematic and comparative methods, institutional and structural-functional approach.

Findings. In this article the ways of the inventory management optimization at the enterprises is suggested. Also the possible inventory management systems and strategies that can be used in the practical activity are described. According to the suggested system of the inventory management KPI modern enterprises the following indices should be used:

  1. The storage period.
  2. The turnover rate of stocks.
  3. The optimal order volume.

On the obtained indicators basis the enterprise will be able to calculate the integral KPI that will make it possible to evaluate the level of inventory management efficiency. Thus, the use of the KPI in the inventory management will provide a clear picture of this process and identify the improvement directions for the enterprise.

Research limitations/implications. The scientific significance of the article consists in the research of the possible ways of the inventory management system optimization at the domestic enterprises.

Originality/value. The suggested in this article measures will further the increase of the Ukrainian enterprises’ competitiveness and will multiply their financial results. The inventory management considering as the basic element of the logistic strategy and its optimization will secure the uninterrupted, mutually agreed and effective activity of the enterprises

Author Biographies

Artem Suchkov, Zaporizhzhia National University, Zaporizhzhia, Ukraine

PhD in Economics, Assistant Professor of the Department of Entrepreneurship, Management of Organizations and Logіstiсs, Zaporizhzhia National University, Zaporizhzhia, Ukraine

Aljona Pomogaiko, Zaporizhzhia National University, Zaporizhzhia, Ukraine

Master’s degree student of Management Department, Zaporizhzhya National University, Zaporizhzhya, Ukraine

References

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Published
2017-11-20
How to Cite
Suchkov, A., & Pomogaiko, A. (2017). The inventory management optimization as the basic еlement of the enterprise’s logistic strategy. Management And Entrepreneurship: Trends Of Development, (2(02), 112-118. Retrieved from https://management-journal.org.ua/index.php/journal/article/view/36
Section
Logistics and Supply Chain Management